Furusato Nozei one-stop exception: no tax return needed if you donate to 5 or fewer local governmentsFurusato Nozei is easy to handle if you support 5 towns or fewer
The Furusato Nozei (hometown tax donation) one-stop exception lets you receive the deduction without filing a tax return if you donate to 5 or fewer local governments in the year. You submit an application to each recipient. If you donate to 6 or more, or do not use the exception, you must file a tax return.
- ○Applies: Donations in the year go to 5 or fewer recipients
- ○Applies: An application is submitted to each recipient
- ×Does not apply: You donated to 6 or more recipients
Key points
- The one-stop exception can be used only when donations in the year go to 5 or fewer recipients. The application is made to each recipient local government.
- If you donate to 6 or more recipients, or do not use the exception, you file a tax return by March 15 of the following year to receive the deduction.
- The portion of the donation exceeding JPY 2,000 is eligible for the deduction (JPY 2,000 is the out-of-pocket cost).
- The deadline for filing a tax return to receive the deduction is March 15 of the year after the donation.
- Details such as the application deadline must be confirmed with the guidance of each recipient local government.
What to do in practice
- Count the number of recipients for the year and check that it stays at 5 or fewer.
- Check the application deadline for the one-stop exception in each recipient's guidance.
Furusato Nozei lets you donate to a town you like to support, and your taxes go down a little later. If you support 5 towns or fewer, a simple application called the "one-stop exception" is all you need. If you support 6 or more, you have to file a tax return in spring.
Points
- If you donate to a town you like, the amount over JPY 2,000 is taken off your taxes.
- If you support 5 towns or fewer, you just send an application form to each town and do not need to file a tax return.
- If you support 6 or more, or do not use the exception, you file a tax return by March 15 of the next year.
What the words mean
- One-stop exception
- A simple way to get the tax benefit of a donation without filing a tax return
- Tax return filing (kakutei shinkoku)
- Calculating a year's income and tax yourself and reporting it to the tax office
- Ministry of Internal Affairs and Communications: Ministry of Internal Affairs and Communications: How Furusato Nozei works
- Ministry of Internal Affairs and Communications: Ministry of Internal Affairs and Communications: Furusato Nozei FAQ
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.